Size: 10,794 km²; is totally occupied by hills and mountains. The main
flat area in the region is located on the highland named “Fucino
Valley”, a former wet (lake) area that has been dried in order to provide
farm land to local population.

1,299,272 inhabitants; 82% live in rural areas; average population density
of 120.3 inhabitants/km², lower than the national average (191
inhabitants/km²).

Unemployment rate is about 7.9% (7.7% at national and 8% at EU level).

There are 78,687 (year 2003) farms with an average farm size of 5.20ha
(national average: 6.7ha) which manage 432,000 ha in terms of
UAA[2] (40% of the regional
territory).

The incidence of territory covered by forests reaches roughly 41% of the
regional territory (450,000 ha).

Chosen strategy corresponding to
the profile:

The strategy of Abruzzo´s rural development programme is centred around
three general objectives:

improve the competitiveness of the agricultural and forestry sector;

develop the rural areas through the management of the territory;

improve the quality of life in the rural areas and promote the
diversification of economic activities.

To strengthen competitiveness, develop a sustainable use of natural resources
and the global attractiveness of rural areas by intervening on integration
between the development of agricultural and forestry sector, environment,
bio-energy, rural tourism and services.

Axis 1 budget allocation and main priorities:

EAFRD: € 72.631.728.

Total public expenditure: € 165.072.109.

The improvement of the competitiveness of the agricultural and forestry
sector will be based on several aspects:

Consolidation and development of the quality of agricultural and forestry
production;

Promotion of the modernization and higher integration in forestry and
agri-food sector

Improvement of the entrepreneurial and professional capacities of the
employed persons in the agricultural and forestry sector and support for the
generational renewal.

Axis 2 budget allocation and main
priorities:

EAFRD: € 62.497.071.

Total public expenditure: € 142.038.798.

The improvement of the environment and of the rural areas will be based on
the active role of the agri-forestry activities taking the management of water
resources and the increase of production of renewable energy as main priorities.
Moreover the programme will address:

- the conservation of the biodiversity and protection and distribution of
the agri-forestry systems in protected areas.

- the qualitative and quantitative safeguard of the surface and underground
water,

- the reduction of greenhouse gases,

- the safeguarding of the territory.

Axis 3 budget allocation and main priorities:

EAFRD: € 18.580.211.

Total public expenditure: € 42.227.753.

The support of Axis 3 is focused on C and D rural areas in need of
development and revitalization of the productive base and maintenance of rural
population dynamics. The priorities are:

the improvement of the attractiveness of the countryside for the companies
and the population;

maintenance and/or creation of new jobs in the rural areas.

Leader budget allocation:

EAFRD: € 8.445.550.

Total public expenditure: € 19.194.432.

In this axis, identified priorities aim:

at the strengthening of the capacity of programming and local management;

Marche has a total surface of 9,963 km² and a population of 1,471,000
inhabitants. The territory is characterized by a mountainous internal area and
by hills. Plain areas are rare and mainly localized near the Adriatic coast or
along the rivers. Rural areas are significant and cover 95% of the regional
surface, and have 81% of the population. Rural population density is, on
average, 129 inhabitants/km².

According to the last available data, the regional
UAA[4] is approx. 512,000 Ha.
Arable land is about 80%, while permanent pastures and grasslands covers approx.
7%. 13% of the regional UAA, finally, is represented by permanent crops.

Chosen strategy corresponding to the profile:

The strategy of the Rural Development Programme for Marche focuses on, within
the framework set up at the Community and national level, three general
objectives:

improving the competitiveness of agriculture and forestry

improving the environment and the countryside

improving the quality of life in rural areas and promoting the
diversification of rural economy.

Budget overall and share of EU
funding

Axis

Total Public Expenditure

Share of EAFRD in Public expenditure in %

EAFRD Contribution

Axis 1

194,098,182

44,00

85,403,200

Axis 2

178,350,000

44.00

78,474,000

Axis 3

41,390,909

44.00

18,212,000

LEADER

27,589,091

44.00

12,139,200

T A

18,390,000

44.00

8,091,600

Total

459,818,182

44.00

202,320,000

Overall aim of RD programme in country

The overall objectives are:

Strengthening the competitiveness of the agricultural and forestry sector,

Promoting the sustainable use of natural resources and landscape
conservation,

Promotion of the diversification of the rural economy and quality of
life

Axis 1 budget allocation and main priorities:

EAFRD: € 85,403,200.

Total public expenditure: € 194,098,182.

The financial weight of the axis is 42.2%.

The priorities of axis 1 (improving the competitiveness of agriculture and
forestry) are the followings:

to promote modernization and innovation of holdings and industry

to improve the quality of agricultural and forestry production

to develop physical and telematic infrastructures

to enhance the entrepreneurial capacities of agricultural and forestry
workers and to promote generational renewal.

The measure for the
modernization of agricultural holdings is the most important, as it represents
the 52% of the budget of the axis. The measure for the increase of the added
value of agricultural and forestry products is also relevant, as well as the
support for the setting up of young farmers (15% and 10%, respectively).

Axis 2 budget allocation and main priorities:

EAFRD: € 78,474,000.

Total public expenditure: € 178,350,000.

The financial weight of the axis is 38.8%.

The priorities of axis 2 (improving the environment and the countryside)
are:

the conservation of biodiversity and the protection of agricultural and
forestry areas with a high environmental value,

the protection of water resources

the reduction of greenhouse gases

the safeguarding of landscape and countryside.

The
agro-environmental measure is the most significant, taking up 47% of axis 2.
The payments for farmers localized in mountain areas and other areas with
natural handicaps are also important (10% and 4%), as well as the measure for
the first afforestation of agricultural land, which represents 13% of the axis
budget.

Axis 3 budget allocation and main priorities:

EAFRD: € 18,212,000.

Total public expenditure: € 41,390,909.

The financial weight of the axis is 9% (15% considering Leader).

The objectives of axis 3 (quality of life in rural areas and diversification
of the rural economy) are:

to maintain and create employment and income in rural areas

to enhance the conditions of rural areas, for the population and the
enterprises.

The most important measure of axis 3 is the measure for
the diversification into non-agricultural activities, which covers more than 74%
of the resources of the axis. The measure for the setting up of basic services
is also significant, as it represents 15% of the axis budget.

Leader budget allocation:

EAFRD: € 12,139,200

Total public expenditure: € 27,589,091.

The financial weight of the axis is 6%.

The objectives of Leader are:

to reinforce the participation of local communities in the definition of
rural development policies,

to valorize the endogenous resources of the rural areas. The Local Action
Groups will implement the measures of axis 3 and a specific measure (measure
410) for territorial marketing and certification. Inter-territorial and
trans-national cooperation will be also financed.

Region: Trento

Profile of the region:

Size: 6,364.82 km²; The Province of Trento is considered entirely
mountainous, with limited flat land areas at the end of the valley. The
territory is divided longitudinally by the river Adige which divides Western and
Eastern Trentino and gives its name to the Valley.

502,478 inhabitants; high average population density in urban area in
particular in the capital city of the Province, i.e. Trento, with surface area
of 157.94 km2 and 703 inhabitants/ km², while in rural area
(D) lies the rest of the Province with surface area of 6206.88 km2
and an average population density of 64 inhabitants/km²;

Unemployment rate of 3.2% is among the lowest by EU standards (2004
data).

The incidence of territory covered by forests reaches 55.6% of the Province
territory, of which 276,988 ha have productive characteristics.

According to the data from the 2000 agricultural census, 34,694 holdings
cover 76% of the whole Province territory, 7.9% of the agricultural and forestry
land does non belong to any holding, and 16% of the land is not fertile.

In 2003, the total number of holdings was 26,010 with an average size UAA of
5.8 Ha, in terms of agricultural holdings size: 89.1% of holdings have less than
5 ha of UAA; 9.8% of holdings have between 5 to less than 50 ha of UAA; and 1.1%
of holdings have 50 ha or more of UAA.

Chosen strategy
corresponding to the profile:

In the framework of the priorities set up at community and national level,
the programme's strategy has identified an overall objective in the
conservation, valorisation, and review of the rural mountainous landscape and
its economic, environmental and cultural aspects.

This overall objective will be pursued through the three rural development
thematic axes. The situation in terms of spending rates is the following: axis
1 has a financial weight of 30.3%. Axis 2 represents the 52.9% of the total
programme's budget; axis 3 is 10.3% and the financial weight of Leader axis is
6.0%.

Budget overall and share of EU funding

Axis

Total Public Expenditure

Share of EAFRD in Public expenditure in %

EAFRD Contribution

Axis 1

87,223,608

35,00

30,528,263

Axis 2

121,059,822

44,00

53,266,322

Axis 3

29,583,300

35,00

10,354,155

LEADER

17,142,857

35,00

6,000,000

T A

1,143,773

44,00

503,260

Total

256,153,361

100,652,000

Overall aim of RD programme in country

To strengthen the competitiveness, develop a sustainable use of natural
resources and the global attractiveness of rural areas by intervening on
integration between the development of agricultural and forestry sector,
environment, rural tourism and services.

Axis 1 budget allocation and main priorities:

EAFRD: € 30,528,263.

Total public expenditure: € 87,223,608.

The priorities of the axis will be to increase and/or maintain
competitiveness in the agroforestry sector through:

investments in human capital, through enhancement of vocational training and
entrepreneurial skills of workers; valorisation of young farmers

development and upgrading of local infrastructure (with special focus on
renovation of irrigation infrastructure for water saving, and provision of basic
services to mountain areas)

development of process/product innovation to improve competitiveness of
production sectors

increase in quality of local agricultural and forestry products; improvement
of service for marketing and promotion of products and tourism.

The
financial weight of the axis is 30.3%.

Axis 2 budget allocation and main priorities:

EAFRD: € 53,266,322.

Total public expenditure: € 121,059,822.

The priorities of axis 2 are to intensify the protection of biodiversity and
promote the local environmental-landscape. In particular:

improved sustainable management of the territory to protect natural
resources and valorisation of agroforestry activities with high natural value
and landscape diversity

protection of the LFA (less favoured area) mountain ecosystem and support to
activities of biodiversity conservation

quantitative and qualitative protection of water resources

agroforestry activities for the reduction of greenhouse gases

introduction and development of organic and extensive farming

protection of species at risk of extinction

protection of forests through development of prevention
measures

The financial weight of the axis 2 is 52.9%.

The measures supporting the sustainable use of agricultural land will be very
important (93.3% of the axis). Agri-environment, in particular, will have almost
47% of the financial resources of axis 2, and 46.3% to financing compensatory
allowances for natural handicaps and socio-economic disadvantages.

Axis 3 budget allocation and main priorities:

EAFRD: € 10,354,155.

Total public expenditure: € 29,583,300.

For axis 3, the priorities are to increase the attractiveness of rural areas
for businesses and the population, and to maintain and create new employment
opportunities, through:

focus on areas with high environmental value and landscape diversity, and on
areas with high loss of competitiveness or affected by abandonment

encouraging creation and dissemination of services to the population and
SMEs, including ICT

favouring the growth of human capital in rural areas by increasing training
and information activities.

The financial weight of the axis 3 is
10.3%.

The measures supporting training and information will be very important 57.3%
of the resources, while the measures to diversify the rural economy will be less
relevant (19.5%).